How EVs are helping China combat rising fuel prices

China has an increasingly important ​buffer against oil price shocks: electric taxis, Reuters writes.

Across Chinese cities, taxi usage and ridesharing are booming. In May, people took 3.05 billion trips, ‌with government data showing trips have grown 6% since the Iran war began at the end of February, versus March to May last year.

The jump reflects a quirk of China’s transport structure: fares are falling despite gasoline prices rising. Analysts say a flood of new drivers searching for work in a sluggish economy combined with cheap electric cars is ​depressing fares, in turn attracting passengers who want to save on higher petrol costs.

With the electrification of taxis, the rideshare boom adds to evidence that transportation in China is becoming less dependent on oil, insulating it against oil shocks.